The political turmoil over Brexit is at odds with the economic reality

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Our exit from the EU will create a substantial fiscal dividend, which the Chancellor Philip Hammond can spend on a mixture of debt reduction, higher government expenditure and tax cutsCredit:
Chris J. Ratcliffe/Bloomberg

We are now entering one of the worst periods in the run-up to Brexit. The clock is ticking and EU negotiators are trying to ratchet up the pressure. Meanwhile, there appears to have been little solid progress with regard to the trade agreement that Theresa May has been seeking. The EU continues to press for more money upfront before it will deign to negotiate on trade.

The British government should stand firm. There is nothing in the Lisbon Treaty to say that a departing country should make a large payment to the EU before starting trade talks. And there is nothing in economics justifying the payment of a large sum to the EU in return for “access” to the single market.